Washington Alert-Part I

…IRS published on July 3 a list of five basic tips regarding federal tax responsibilities for those who intend to establish a new business. The tips include the following: decide on the type of business to be established (for example, sole proprietorship, partnership, C corporation, S corporation, or Limited Liability Company); become familiar with the four general types of business taxes (income tax, self-employment tax, employment tax, and excise tax); determine whether an Employer Identification Number will be required; set up a recordkeeping system that clearly shows income and expenses; and select the consistent accounting method that will be used, such as the cash method or the accrual method. The tax tips are located here.

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